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HomeMy WebLinkAbout07.17.23 Work Session Minutes City of Farmington City Council Work Session Minutes Monday, July 17, 2023 The Farmington City Council met in a work session on Monday, July 17, 2023, in the City Hall Council Chambers, 430 3rd Street, Farmington, Minnesota. 1. CALL TO ORDER Mayor Hoyt called the work session to order at 5:00 p.m. Members Present: Mayor Joshua Hoyt Councilmembers Holly Bernatz, Nick Lien, Katie Porter, and Steve Wilson Members Absent: None Also Present: Lynn Gorski, City Administrator Julie Flaten, Asst City Administrator/HR Director Leah Koch, City Attorney Deanna Kuennen, Community Development Director Chris Regis, Finance Director Kellee Omlid, Parks & Recreation Director Gary Rutherford, Police Chief John Powell, Public Works Director Shirley Buecksler, City Clerk Kyle Sawyer, Ehlers 2. APPROVE AGENDA Motion was made by Councilmember Porter and seconded by Councilmember Wilson to approve the agenda, as presented. Motion carried: 5 ayes /0 nays. 3. DISCUSSION ITEMS 3.1 Utility Rate Study Staff hired Ehlers to undertake a rate study of the Sewer, Water and Storm Water Funds. Operating costs continue to increase in the three funds, specifically Met Council charges in the Sewer Fund. In addition, the funds are supporting the General Fund and helping finance capital improvements, which puts pressure on the cash balances of each fund. The rate study looks at the current rates, operating costs, and cash balances and projects future rates that will provide positive operations and support minimum cash balances. City Council Work Session Minutes July 17,2023 Page 2 of 4 Discussion and comments: • Farmington has had incremental growth every year. Farmington moved to the tiered structure 10 to 15 years ago due to a conservation requirement from the Department of Natural Resources (DNR). • Continued monitoring and updating should be done every few years to be consistent. • Communication to include the big picture, hosting an open listening session, and providing residents with ideas on how reduce water and sewer usage (i.e., high efficiency appliances) that can positively impact consumption and reduce costs. • Consider paying with cash versus bonding. The bond is already built into the recommended rate increase. The same rates could be used to pay with cash. • Rates need to increase to cover the Met Council fee and other operating costs. • Is there value in looking at REU (Residential Equivalency Unit) calculations or factoring in parcels and adding the storm water charge? • How can we have a more reliable standard to get as close as possible to actual usage? Should topography be considered, compared to another property where water flows away? We need to be equitable and fair. • Using the Pavement Condition Index, identify project areas and inform residents of future projects. • Restricted cash for drinking water treatment is only restricted to being spent on a water treatment plant. Funds are sitting flat at $2.4 million with no additions to the fund. A new treatment plant could cost $25 million. Location of a facility; could those funds be used for the acquisition of it? It's start-up money. Ideas could be looking at new well locations or blending the two. We could look at that and see if that would point in a certain direction. In theory, we could identify a parcel for treatment or a well or sell back. Or purchase enough property to put in a plant or well. • Money was set aside in 2019 for a water tower and earmarked for 2024. Could it be done? Not all in 2024. We should have a location identified. There will be engineering, studies, and a test well. Models will be updated this fall. • One of our priorities was meeting industry standards. Let's put ourselves in a position that future Councils won't need to discuss it. • Could the tax base rate be adjusted to close the gap for low and medium residential versus increases over time. Down the road, you are essentially telling users that you're charging more for the first 10,000 gallons and not promoting conservation. • How to get more now and increase less over time. We could look at a 30% increase and lower increases over future years. How do we get there as quickly as possible? A model could be looked at with a higher increase over the beginning years. That could potentially solve the problem and get to the flat rate earlier. City Council Work Session Minutes July 17,2023 Page 3 of 4 Direction: • Council would like to see one page with 3% going forward and what that would look like for water with an incremental increase for greater impact. • Review at a future work session before Council sees the actual fee schedule, with a good picture of what the average resident will see. Motion was made by Councilmember Wilson and seconded by Councilmember Bernatz to recess the Work Session until following the Regular Council meeting. Motion carried: 5 ayes / 0 nays. The Work Session was recessed at 6:42 p.m. The Work Session resumed at 7:53 p.m. 3.2 Pavement Management Program (PMP) Update This item was continued to a Special Work Session scheduled for Monday, July 24, 2023. 3.3 Adult Use Cannabis Legalization City Attorney Leah Koch presented on three main effects of new laws including legalization of purchase, possession and use of cannabis, creation of Office of Cannabis Management, and expungement of prior convictions for cannabis use and possession. Discussion and comments: • We need to provide clarification for law enforcement and concentrate on use in public spaces. There also needs to be consistency in our messaging. • Attorney Koch will look at the Clean Indoor Air Act. • The City will be able to set zoning regulations. A joint meeting should be held with the Planning Commission to discuss where it should be allowed. • Licensing will not occur until 2025; no one can be grandfathered in. • Agree with zoning regulations but not restricting businesses. Consensus: • Prefer to wait for the League's guidance and examples and not have to change things later. • Parks should be one of our spaces that are treated like our school grounds. 4. COUNCIL COMMITTEE UPDATE No update. 5. CITY ADMINISTRATOR UPDATE No update. City Council Work Session Minutes July 17,2023 Page 4 of 4 6. ADJOURNMENT Motion was made by Councilmember Lien and seconded by Councilmember Bernatz to adjourn the meeting at 9:04 p.m. Motion carried: 5 ayes / 0 nays. R pectfully submitted, ley R e sler City Clerk